Insurance is not only the most healthily competitive of any market in the UK but also the one with the least customer loyalty, finds a Department of Trade & Industry survey.
The survey shows consumers switch their car and home insurance suppliers more readily than they did in any other area of home finance: 53% switched their home insurance and 30% their car insurance.
There were similarities in other markets but not to the same extent. For instance, switching within the energy market was increasing, but customers still found it difficult to compare products. And consumers frequently considered switching within the mortgage market but were deterred by its complexity and perceived costs. Banks have the lowest level of customer switching, because consumers fear unwanted hassle from their direct debits and standing orders.
But the insurance market has the highest levels of churn in the most dynamic market.
